September 25-26

Welcome Back, Weekend Warriors!

This is the Amy Jones Group's weekly newsletter, detailing local events, recent real estate news, and open houses.

This week, we're bringing you six fun-filled events happening around the Valley!

Market stabilization is an interesting term and one which is causing quite a bit of confusion in the marketplace as it relates to the available supply of residential properties and the subsequent demand for those properties across the valley. 

After more than a decade of under building fueled by the fear of a market crash that would leave us with half-developed communities combined with a population growth escalated by the continued influx of residents and companies from higher price point cities with lower affordability ratings, we’ve been challenged with a deficit in inventory that will take months if not years to recover from. 

Watch below as local publication - BeLocal Gilbert interviews the owner of the Amy Jones Group - Our very own Mindy! She talks about who we are, who we serve, why staying up to date on the market is so important (especially now) and how we stay connected with our local community!

We’ve watched appreciation rates go from just 6% annually 2 years ago to 24% annual appreciation over the last 12 months meaning that a house you bought for $450,000 before Halloween of last year would likely list for over $100,000 more this Fall or be prime for a refinance that would allow you to remove your mortgage insurance years before your lender originally estimated. 

Sellers have enjoyed just 2.5 weeks of inventory to compete with as compared to a balanced market which would have nearly 5x the inventory, and buyers can’t help but to be thrilled with interest rates +/-3% making even the most expensive purchases seem more affordable than ever. Listings under contract are up, days on market is down, average sales to list price is still trending about 2% over list price, and while demand is slightly lower than average, supply is just a 1/4 of what we need which is something we simply can’t build over night.

So, what is stable about this type of a market? While inventory has nearly tripled since the spring, growing 25% in July alone, we have seen a decreasing amount of volatility in our market over the last month. While it may have been difficult for the consumer to detect, as inventory was skyrocketing, not just in price but quantity, demand was falling as many buyers became discouraged with the pace of the market and others felt priced out of options especially here in the Valley. For now, those trends seem to have slowed if not stopped completely, leaving the balance of supply and demand at a standstill month over month.

As rental prices have soared 36% valley wide in the last two years, paling in comparison to the 55% increase in housing prices over the same time period, this potential calming of the waters might be the best time to rev up your home buying engines. The expectation of increasing prices and interest rates continues to drive buyer demand while sellers can read between the lines of the 32% increase in new home permits from the first half of the year, and investors - well, you might want to take a cue from some of the biggest who have doubled down on purchases in the valley.

As seasonality returns to the landscape, we’ll likely continue to see a market very similar to the one we were in before COVID came on the scene in 2020. January will likely bring another increase in homes available after a strong new construction quarter rounds out 2021, and then the Spring will return a lighter version of the frenzy seen earlier this year.  

Staying out of the prediction game and knowing that institutional buyers are currently playing a larger role in the current market than expected, this market stabilization period although at a much lower inventory level than buyers had hoped for, seems like a good time to try to settle into that new home for the holidays. Have questions? Schedule a call with the Amy Jones Group today!

😲 In Case You Missed It!